The South African rand held steady as market participants awaited the upcoming budget speech by Finance Minister Enoch Godongwana.
According to Reuters, the local currency was trading at 18.3575 against the U.S. dollar, showing little change from its previous close of 18.3525.
Investors are keenly anticipating the budget presentation to parliament scheduled for Wednesday, February 22, 2023. This event is expected to reveal the government’s spending priorities, tax collection strategies, and revised economic projections for the year ahead. South Africa’s budget deficit is projected to be wider than previously estimated for the next three years, according to analysts surveyed by Reuters.
In the bond market, South Africa’s benchmark 2030 government bond exhibited a slight decline in strength, with yields rising by 1.5 basis points to 9.11% in early transactions.
The financial community is closely monitoring the upcoming budget speech for indications of how South Africa, Africa’s most industrialized economy, will navigate fiscal challenges and promote economic growth in the coming year.
